Indian equity benchmarks exhibited volatility on Thursday, sharply reversing early gains amid weak global signals. The BSE Sensex plunged over 200 points after a muted start to trade at 66,694. Meanwhile, the Nifty50 hovered around the psychological 20,000 level.
On the Sensex pack, HDFC Bank, Tata Steel, Asian Paints, NTPC, and IndusInd Bank bled the most. However, ITC, Axis Bank, Hindustan Unilever, Sun Pharma, and M&M bucked the trend with modest gains.
Broader indices saw the midcap index rise 0.1% while the smallcap gauge climbed 0.3% as investors cherry-picked mispriced stocks. Among sectors, banks, auto, FMCG, and pharma traded in the green while IT and metal dragged.
The initial uptick on the weekly F&O expiry day got pared as underlying sentiment remained cautious amid recession fears globally. Analysts expect the tug-of-war between bulls and bears to persist at higher levels due to mixed cues.
That said, the Nifty holding the psychologically important 20,000 mark despite volatility remains a positive sign for the bulls. Strong domestic flows through systematic investment plans are also lending support.
In the IPO corner, Tata Technologies continued its dream run with shares listing at a gigantic 140% premium over the issue price. This takes the tally of successful startup and technology listings to seven this year.
On Wednesday, the Sensex had vaulted over 350 points to end at a record closing high of 66,919. The Nifty too had settled above the 20,000 milestone for the first time since September 22. But the rally remains narrowly focused on select heavyweights as broader markets play catchup.
